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Brent Crude Rose as Precious Metals Fell

Oil prices climbed past $107 per barrel on Monday amid Middle East tensions and energy supply concerns.

Updated on Sept. 28, 2026 in Stock Markets

Bold flat-color editorial illustration showing a simple oil drum and a stack of gold bars, representing global financial market trends.
Brent crude climbed above $107 per barrel on Monday due to supply risks, while gold prices declined as traders adjusted interest rate expectations. AI Illustration. Upload story photo >

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Brent crude prices rose above $107 per barrel on Monday, driven by concerns over potential energy disruptions in the Strait of Hormuz. Conversely, global spot gold prices fell 2.1% to $4,198.10 per ounce as traders weighed rising interest rate expectations.

Why it matters

The jump in oil prices reflects acute market sensitivity to energy supply risks in the Middle East. Simultaneously, higher bond yields and interest rate expectations have increased the opportunity cost of holding non-income-generating assets like gold.

Brent crude rose over 3% to exceed $107 per barrel, while US crude oil futures for November delivery increased 1.69% to $94.10 per barrel. Precious metals saw sharp declines, with silver down 3.4% and palladium dropping 2.8%.

The players

Federal Reserve

The central banking system of the United States that manages the nation's monetary policy and interest rate targets.

The details

Rising tensions in the Middle East pushed energy markets higher during early European trading. Meanwhile, precious metals faced downward pressure as market participants recalibrated expectations for future Federal Reserve policy moves.

Timeline

  1. 03:57 GMT, September 28, 2026: Spot gold reached $4,198.10 per ounce.

  2. September 28, 2026: Brent crude rose above $107 per barrel.

  3. September 1, 2026: The last single-day price decline for gold of this magnitude occurred.

  4. October 2026: Potential timeframe for a US interest rate hike.

  5. November 2026: Delivery month for current US crude oil futures.

Market Dynamics

This activity follows the trajectory set by the Federal Reserve's current target interest rate range of 3.75%-4%, which continues to influence capital flows between energy and non-income-generating precious metals.

Retail and institutional investors are navigating increased volatility in energy sectors alongside pressure on precious metal portfolios. The 68% probability of an October interest rate hike suggests ongoing sensitivity for those holding interest-sensitive assets.

The takeaway

Market participants should anticipate continued sensitivity to geopolitical developments in energy-producing regions and shifting monetary policy expectations. Diversifying exposure between commodities and interest-rate-sensitive assets remains a common strategy in such volatile environments.

Further reading

For additional context on global equity and commodity trends, visit the Stock Markets section.

Source note: This article includes information reported by خبرگزاری صدای افغان(آوا) | اخبار افغانستان و جهان | Afghan voice agency.

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